Zarea Limited unveils record growth, expansion plans
With robust growth indicators, strategic expansion, and a highly attractive valuation, Zarea is positioning itself as one of the most promising investment opportunities on the Pakistan Stock Exchange (PSX).
Exceptional Financial Performance:
• Net Revenue for 9MFY25 reached PKR 805 million, reflecting a 207% CAGR since FY21.
• Net Profit surged to PKR 454 million, recording a 233% CAGR.
• Return on Equity (ROE) stands at a strong 22%, among the highest in the PSX technology sector.
Attractive Valuation & Investment Upside:
• Zarea's shares are currently trading at a P/E ratio of 6.81x, representing an 82% discount compared to the tech sector average of 37.92x.
• Based on financial performance, sector positioning, and peer benchmarking, a Buy stance has been recommended with a 12-month target price of PKR 30–32 per share, implying a potential upside of over 80% from current levels.
• With strong profitability and a growing cash base, future dividend payouts are also expected to commence, further enhancing total shareholder returns.
Robust Balance Sheet:
• Shareholders' Equity rose to PKR 2.06 billion by 9MFY25.
• Asset base expanded from PKR 629 million in FY24 to PKR 2.1 billion in 9MFY25.
Strategic Growth Initiatives:
• Launch of Import Division for industrial procurement.
• Initiation of Export Division with a targeted $10 million in revenues over three years.
• Establishment of an in-house logistics arm to optimize delivery and service.
• Expansion into value-added agricultural processing.
• Major digital platform upgrades to enhance user experience and drive retention.
Regional Benchmarking:
Zarea is following a proven trajectory set by regional B2B unicorns such as Udaan and OfBusiness in India, both achieving multi-billion-dollar valuations through digital disruption of commodity procurement. With Pakistan's commodities sector valued at over USD 20 billion, Zarea's target to capture 1% market share over the next decade unlocks enormous potential for scale, valuation uplift, and regional leadership.
Copyright Business Recorder, 2025
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